Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17967 

64See ISE Rule 710. 

65See Proposed ISE Rule 2206(a)(4). 

66See Proposed ISE Rule 2205. 

67See Proposed ISE Rule 2204. 

68See Proposed ISE Rule 2210. 

69See Notice, supra note 5. 70 15 U.S.C. 78s(b)(2). 

71 15 U.S.C. 78s(b)(2). 

72 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5 ‘‘Premium Products’’ is defined in the Schedule 

of Fees as the products enumerated therein. 

increment for an FCO trading at $3.00 

or higher will be $0.10.64 In addition, 

the Commission believes that it is 

reasonable for the Exchange to list 

exercise prices of series at intervals no 

less than $0.10.65 Further, the Exchange 

believes that it appropriate for the 

Exchange to list FCOs with expirations 

that are the same as the expirations 

currently permitted for index options, 

with the exception that FCO long-term 

series will only have expirations up to 

36 months.66

The Commission also notes that, 

consistent with the Act, the proposed 

rules provide that the Exchange will 

have the ability to withdraw approval of 

the trading of a FCO if advisable in the 

public interest or for the protection of 

investors,67 and an Exchange official 

will have the authority to halt or 

suspend trading in an FCO under 

certain circumstances in the interest of 

a fair and orderly market.68

H. Accelerated Approval 

The Commission finds good cause for 

approving the proposed rule change, as 

amended, prior to the thirtieth day after 

publishing notice of Amendment No. 2 

in the Federal Register. The 

Commission notes that the proposal, as 

modified by Amendment No. 1, was 

published for notice and comment,69

and that the Commission received no 

comment letters on the proposal. 

Amendment No. 2 proposes to amend 

the proposed rules to specify the 47 

cross-rate FCOs that ISE proposes to list 

and trade, as well as specify the position 

and exercise limits and the applicable 

rate modifiers for each proposed crossrate FCO. The Commission notes that 

the Exchange expressed its intention to 

list cross-rate FCOs in its Exhibit 3 to 

the original proposed rule change, and 

that Amendment No. 2 provided the 

additional clarification necessary to 

allow the Exchange to do so. The 

Commission also notes that the 

proposed cross-rate FCOs are based on 

the same Currencies set forth in the 

original proposal, as modified by 

Amendment No. 1 and published in the 

Federal Register, and they are subject to 

the same rules and requirements as 

other FCOs. As such, the Commission 

believes that Amendment No. 2 does not 

raise any new or novel issues. 

Accordingly, the Commission finds 

good cause, consistent with Section 

19(b)(2) of the Act,70 to approve the 

proposal, as modified by Amendment 

Nos. 1 and 2, on an accelerated basis. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–ISE–2006–59 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–ISE–2006–59. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2006–59 and should be 

submitted on or before May 1, 2007. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,71 that the 

proposed rule change (SR–ISE–2006–

59), as modified by Amendment Nos. 1 

and 2, be, and hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.72

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6655 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55571; File No. SR–ISE–

2007–21] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

April 3, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 26, 

2007, the International Securities 

Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been substantially prepared by the 

ISE. The ISE has designated this 

proposal as one establishing or changing 

a due, fee, or other charge applicable 

only to a member under Section 

19(b)(3)(A)(ii) of the Act,3 and Rule 

19b–4(f)(2) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE is proposing to amend its 

Schedule of Fees to establish fees for 

transactions in options on seven 

Premium Products.5 The text of the 

proposed rule change is available on the 

ISE’s Web site (http:// 


cprice-sewell on PROD1PC66 with NOTICES
17968 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 

6 iShares is a registered trademark of Barclays 

Global Investors, N.A. (‘‘BGI’’), a wholly owned 

subsidiary of Barclays Bank PLC. ‘‘Dow Jones,’’ and 

‘‘Dow Jones U.S. Basic Materials Sector Index 

Fund’’ are trademarks and service marks of Dow 

Jones & Company, Inc. (‘‘Dow Jones’’) and have 

been licensed for use for certain purposes by BGI. 

All other trademarks and service marks are the 

property of their respective owners. IYM is not 

sponsored, endorsed, issued, sold or promoted by 

Dow Jones. BGI and Dow Jones have not licensed 

or authorized ISE to: (i) Engage in the creation, 

listing, provision of a market for trading, marketing, 

and promotion of options on IYM; or (ii) use and 

refer to any of their trademarks or service marks in 

connection with the listing, provision of a market 

for trading, marketing, and promotion of options on 

IYM or with making disclosures concerning options 

on IYM under any applicable federal or state laws, 

rules or regulations. BGI and Dow Jones do not 

sponsor, endorse, or promote such activity by ISE, 

and are not affiliated in any manner with ISE. 

7 iShares is a registered trademark BGI, a wholly 

owned subsidiary of Barclays Bank PLC. ‘‘Standard 

& Poor’s,’’ ‘‘S&P,’’ ‘‘S&P 500,’’ are trademarks of 

The McGraw-Hill Companies, Inc. (‘‘McGrawHill’’), and have been licensed for use for certain 

purposes by BGI. Neither IVW nor IVE are 

sponsored, sold or endorsed by Standard & Poor’s, 

(‘‘S&P’’), a division of McGraw-Hill, and S&P makes 

no representation regarding the advisability of 

investing in IVW and IVE. ‘‘MSCI Germany Index’’

and ‘‘MSCI Australia Index’’ are service marks of 

Morgan Stanley Capital International (‘‘MSCI’’) and 

have been licensed for use for certain purposes by 

BGI. All other trademarks and service marks are the 

property of their respective owners. Neither EWG 

nor EWA are sponsored, endorsed, issued, sold or 

promoted by MSCI. BGI, S&P and MSCI have not 

licensed or authorized ISE to: (i) engage in the 

creation, listing, provision of a market for trading, 

marketing, and promotion of options on IVW, IVE, 

EWG and EWA; or (ii) use and refer to any of their 

trademarks or service marks in connection with the 

listing, provision of a market for trading, marketing, 

and promotion of options on IVW, IVE, EWG and 

EWA or with making disclosures concerning 

options on IVW, IVE, EWG and EWA under any 

applicable federal or state laws, rules or regulations. 

BGI, S&P and MSCI do not sponsor, endorse, or 

promote such activity by ISE, and are not affiliated 

in any manner with ISE. 

8 iShares is a registered trademark of BGI, a 

wholly owned subsidiary of Barclays Bank PLC. 

‘‘KLD Select SocialSM Index’’ and ‘‘Domini 400 

SocialSM Index’’ are service marks of KLD Research 

& Analytics, Inc. and have been licensed for use for 

certain purposes by BGI. All other trademarks and 

service marks are the property of their respective 

owners. Neither KLD nor DSI are sponsored, 

endorsed, issued, sold or promoted by KLD 

Research & Analytics, Inc. BGI and KLD Research 

& Analytics, Inc. have not licensed or authorized 

ISE to: (i) Engage in the creation, listing, provision 

of a market for trading, marketing, and promotion 

of options on KLD and DSI; or (ii) use and refer to 

any of their trademarks or service marks in 

connection with the listing, provision of a market 

for trading, marketing, and promotion of options on 

KLD and DSI or with making disclosures 

concerning options on KLD and DSI under any 

applicable federal or state laws, rules or regulations. 

BGI and KLD Research & Analytics, Inc. do not 

sponsor, endorse, or promote such activity by ISE, 

and are not affiliated in any manner with ISE. 

9The Exchange represents that IYM, EWG, EWA, 

IVW, IVE, KLD and DSI constitute ‘‘Fund Shares,’’

as defined by ISE Rule 502(h). 

10These fees will be charged only to Exchange 

members. Under a pilot program that is set to expire 

on July 31, 2007, these fees will also be charged to 

Linkage Orders (as defined in ISE Rule 1900). See 

Securities Exchange Act Release No. 54204 (July 25, 

2006), 71 FR 43548 (August 1, 2006) (SR–ISE–2006–

38). 

11 ‘‘Public Customer Order’’ is defined in 

Exchange Rule 100(a)(39) as an order for the 

account of a Public Customer. ‘‘Public Customer’’

is defined in Exchange Rule 100(a)(38) as a person 

that is not a broker or dealer in securities. 

12The execution fee is currently between $0.21 

and $0.12 per contract side, depending on the 

Exchange Average Daily Volume, and the 

comparison fee is currently $0.03 per contract side. 

13 15 U.S.C. 78f. 

14 15 U.S.C. 78f(b)(4). 

15 15 U.S.C. 78s(b)(3)(A). 

16 17 CFR 19b–4(f)(2). 

www.iseoptions.com/legal/ 

proposed_rule_changes.asp), at the ISE, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

ISE included statements concerning the 

purpose of, and basis for, the proposed 

rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. The ISE has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to amend 

its Schedule of Fees to establish fees for 

transactions in options on the following 

seven Premium Products: iShares Dow 

Jones U.S. Basic Materials Sector Index 

Fund (‘‘IYM’’),6 iShares MSCI Germany 

Index Fund (‘‘EWG’’), iShares MSCI 

Australia Index Fund (‘‘EWA’’), iShares 

S&P 500 Growth Index Fund (‘‘IVW’’), 

iShares S&P 500 Value Index Fund 

(‘‘IVE’’),7 iShares KLD Select Social 

Index Fund (‘‘KLD’’), and iShares KLD 

400 Social Index Fund (‘‘DSI’’).8

All of the applicable fees covered by 

this filing are identical to fees charged 

by the Exchange for all other Premium 

Products.9 Specifically, the Exchange is 

proposing to adopt an execution fee and 

a comparison fee for all transactions in 

options on IYM, EWG, EWA, IVW, IVE, 

KLD and DSI.10 The amount of the 

execution fee and comparison fee for 

products covered by this filing shall be 

$0.15 and $0.03 per contract, 

respectively, for all Public Customer 

Orders 11 and Firm Proprietary orders. 

The amount of the execution fee and 

comparison fee for all ISE Market Maker 

transactions shall be equal to the 

execution fee and comparison fee 

currently charged by the Exchange for 

ISE Market Maker transactions in equity 

options.12 Finally, the amount of the 

execution fee and comparison fee for all 

non-ISE Market Maker transactions shall 

be $0.16 and $0.03 per contract, 

respectively. Further, since options on 

IYM, EWG, EWA, IVW, IVE, KLD and 

DSI are multiply-listed, the Payment for 

Order Flow fee shall also apply. The 

Exchange believes the proposed rule 

change will further the Exchange’s goal 

of introducing new products to the 

marketplace that are competitively 

priced. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,13

in general, and furthers the objectives of 

Section 6(b)(4),14 in particular, in that it 

is designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

establishes or changes a due, fee, or 

other charge imposed by the Exchange, 

it has become effective pursuant to 

Section 19(b)(3)(A) of the Act 15 and 

Rule 19b–4(f)(2) 16 thereunder. At any 

time within 60 days of the filing of such 

proposed rule change, the Commission 

may summarily abrogate such rule 

change if it appears to the Commission 

that such action is necessary or 

appropriate in the public interest, for 

the protection of investors, or otherwise 

in furtherance of the purposes of the 

Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17969 

17 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5For an order in a non-Nasdaq security through 

which a member accesses liquidity, this change will 

result in a fee reduction; for a quote or order 

through which a member acts as a liquidity 

provider, this change will eliminate the rebate 

previously paid to the member. See e-mail from 

John Yetter, Vice President and Deputy General 

Counsel, Nasdaq, to Sara Gillis, Attorney, Division 

of Market Regulation, Commission, on April 2, 2007 

(‘‘April 2, 2007 E-mail’’). 

6 Depending on the price of the transaction and 

a member’s average daily share volume during the 

month, this change may either constitute a fee 

increase or a fee reduction for a particular routed 

order. See April 2, 2007 E-mail, supra note 5. 

7 17 CFR 242.610. 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–ISE–2007–21 on the subject 

line. 

Paper Comments: 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2007–21. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the ISE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2007–21 and should be 

submitted on or before May 1, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6672 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55576; File No. SR–

NASDAQ–2007–026] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Pricing for Nasdaq Members Using the 

Nasdaq Market Center 

April 3, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 22, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by Nasdaq. 

Nasdaq has designated this proposal as 

one establishing or changing a due, fee, 

or other charge under Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b–

4(f)(2) thereunder,4 which renders the 

proposed rule change effective 

immediately upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify the 

pricing for Nasdaq members using the 

Nasdaq Market Center. The text of the 

proposed rule change is available at 

Nasdaq, on the Exchange’s Web site at 

http://www.nasdaq.com, and in the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq included statements concerning 

the purpose of, and basis for, the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. Nasdaq has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq proposes to conform its 

execution fees and liquidity-provider 

rebates for transactions in non-Nasdaqlisted securities priced under $1 to the 

current fees and rebates for Nasdaqlisted securities priced under $1. The 

execution fees for such transactions will 

be 0.1% of the total transaction cost, 

and the liquidity-provider rebate will be 

zero.5 Thus, for example, the execution 

fee for a trade of 100 shares in a stock 

priced at $0.70 would be $0.07, with no 

rebate to the liquidity provider. 

Nasdaq is also proposing to modify 

the routing fee for Nasdaq-listed and 

non-Nasdaq-listed securities priced 

under $1 to 0.3% of the total transaction 

cost.6 The change reflects the fact that 

under Rule 610 of Regulation NMS,7

market centers to which Nasdaq routes 

may charge Nasdaq only up to 0.3% of 

the transaction cost for executing routed 

orders in securities priced under $1. 

Nasdaq recently began trading nonNasdaq-listed securities priced under $1 

in sub-penny increments. As a result, 

Nasdaq has seen an increase in its share 

volume in these securities. Nasdaq 

believes that, as is true for Nasdaq-listed 

securities, the pricing structure for these 

securities ensures that market 

participants do not pay execution or 

routing fees, or receive rebates, that are 

disproportionately large when 

compared with the dollar value of a 

particular transaction. Nasdaq believes 

that the changes also ensure that 

execution fees are in compliance with 

Rule 610 of Regulation NMS. 

Separately, Nasdaq has filed a proposal 

for a retroactive reduction in the fees 

charged for executions of non-Nasdaqlisted securities priced under $1 for the 

period from March 5 through March 21, 

2007, to ensure that these fees are also 

in compliance with the requirements of 

Rule 610. 


cprice-sewell on PROD1PC66 with NOTICES